NEWS / Industry Bulletin
PROGRESS OF THE CODE REVIEW
T
he Independent Reviewer of the Insurance Brokers Code of Practice, Marigold Magnaye, has provided an update into the progress of the Code review. In February 2021, the Discussion Paper seeking submissions on the NIBA Code of Practice Review was released. It was a longawaited release, with the benefit of having significant key stakeholder input and was informed by the findings from the Hayne Royal Commission, regulatory responses, and the results of other key Codes of Practice in the financial services industry. Significantly, the Discussion Paper included input from NIBA in the form of a draft proposed amended Code of Practice. The release of this document has offered valuable transparency to key stakeholders and other interested parties on NIBA’s thinking which has allowed submissions to address and identify key areas where progress can be made. Magnaye said, “Ten submissions were received in total from brokers, other industry or representative bodies, the Consumer Federation of Australia (CFA), and the Insurance Brokers Code Compliance Committee (IBCCC). It is clear there is great interest in the NIBA Code of Practice across the board, and a belief that industry codes
have an important role to play in establishing good practices, values, and a culture that a profession seeks to reflect.” Submission suggestions relating to implementation of the revised Code of Practice and how brokers and customers can be supported in this process have been welcomed. The practical implementation of
a Code and successfully embedding it in an industry remains the benchmark for an effective “living Code”. She added, “The most detailed submissions were provided by the CFA and the IBCCC, and the message is clear that more is expected of the revised Code of Practice in order to meet consumer expectations. NIBA’s directors are taking on board these submissions and I am working with CEO Dallas Booth and the Association’s board to consider their feedback and NIBA membership buy-in on the key issues arising and how a revised Code fits within the strategic plans for the profession.” Magnaye also clarified the next phase of the Code of Practice Review will be an iterative process, keeping lines of communication open between NIBA and key stakeholders on the key issues, “I am grateful for the ongoing assistance offered by the NIBA Board, the CFA, and the IBCCC to progress the review. “The Code Review remains on track, with the intent being to close expectation gaps through focused consultation in the coming months. These next few months will be critical in determining the timing and content of the revised Code,” she concluded.
BUDGET 2021-22 OVERVIEW FOR INSURANCE BROKERS The federal budget for 2021-22 delivered by the treasurer Josh Frydenberg has addressed many of the concerns being faced by small businesses. The National Insurance Brokers Association (NIBA), CEO, Dallas Booth welcomed the budget and said, “Measures including tax cuts for small businesses, incentives to invest in your business, significant support for regional areas, targeted industry packages and more will not only help insurance clients but also broking businesses.” He added that what insurance brokers do is more than just procure policies,
they are trusted advisers for business owners. “There is continued support for many sectors, regions and communities that face significant challenges and brokers need to tell clients about every bit of help available.” This budget also implements measures announced by the Government in its response to the recommendations of the Royal Commission into National Natural Disaster Arrangements. On the disaster mitigation funding announcement, Andrew Hall, Insurance Council of Australia CEO said, “Insurers look forward to working
with the Government and other stakeholders on the design and implementation of the cyclone reinsurance pool ahead of its implementation mid-2022.” Booth added, “We at NIBA fully support these measures and look forward to working with the ICA to ensure that all Australians have access to insurance cover that is affordable.” You can read more about the support available to business on the government’s website at budget.gov.au/2021-22/ content/download/glossy_jobs.pdf, or scan the QR code above.
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12 / INSURANCE ADVISER JUNE 2021
